Tesla CEO and SpaceX owner Elon Musk has been awarded an incredible pay package from Tesla. He normally doesn’t get paid a normal salary, even as the CEO. However, the company wants to reward him for the success it has had in the past few years. They’re doing this in a very big way, but that does not come without rules! Keep reading to discover how much he got paid, and what he has to do to receive it!
Tesla Gives 29 Billion Dollar Worth Of Shares To Elon!
While you might think that Elon Musk is receiving his money directly into his bank account, Tesla is paying him in shares of the company. However, this comes with specific rules. The Shares that Elon receives can only be sold for money in 2 years. This is a long time for a company. During these two years, Elon is also supposed to fulfill a managing role in order to receive the pay package. Tesla wants to lure Elon Musk back with this incredible paycheck. Earlier this year, Elon Musk went on a political journey. He also got involved in other projects and wasn’t really there for Tesla!
This might seem “useless”; however, it does mean that his pay package can increase in value if the company’s value increases even more. Besides that, getting paid in shares of the company means that Elon Musk doesn’t have to pay income tax on the amount. He will have to pay if he sells some of the stock. Most billionaires will take out loans and put the stocks as collateral
The Pay Package Can Still Be Cancelled
While the package might look incredibly high, it is not certain that it will be “paid out” yet. Not only does Elon have to follow all the preset rules, but there is more! In 2024, a judge ruled that the 2017 pay package of Elon Musk, which was $50 billion, was not justified. So, if Tesla were in the “wrong” here, then the 29 billion pay package deal would also fall through.
Featured image credit: WSJ
